Carry trades system - please give your valuable feedbacks

[RahmanSL]

I have been trying out “Carry Trade” system for the past few months, but have not been too successful due to my extremely bad habit for messing up the trade set-up by making other type of trades which inevitably caused the trading account to get into trouble.

Yesterday, Tuesday 21/Jan/2013, for some reasons, the Turkish Lira fell and made new lows against both the Euro & USD.
Taking the opportunity, I funded USD1,178.40 (after banks charges from USD1,200 cc deposit) on a new ECN account with ICMarkets and took 10 numbers 0.05 lot size trades for the relatively high swaps value.

Today, Wednesday 22/Jan/2014, the account received total of USD12.70 positive daily swaps for the 10 nos. of 0.05 lot size trades on EUR/TRY. I further deposited another USD1,178.40 (after banks charges from USD1,200 cc deposit) into the account to increase the free margin level as buffer against any further unexpected drop in the Turkish Lira.
I have included two attachments for interested readers comments and suggestions.

The first attachment is the actual live ECN trading account for today (M30 chart showing yesterday’s highest level at around 3.06783).

The second attachment shows actual deposits made to fund the account (and also showing some trades made and closed).

The third attachment shows the expected positive swaps that can be derived if all 10 positions (opened since yesterday, 21/Jan/2014) are left running for one full year….i.e AUD4,635.50 which will be an increase of 193.15% over actual deposit (AUD2,400.00).

I have added 3 more trades today (with 6 more pending orders), but for ease of yearly swap calculations, we shall ignore these for now and confined that to the first 10 trades made. I will probably close out 3 trades as they go into some profits and keep only 10 open trades to run for 1 year. When price go back to the upper levels, I will selectively open 3 more trades or wait for pending orders to be triggered.

Alright!...Now I would highly appreciate feedback from my fellow FPA members and their valuable opinion on this type of trading potential, danger of account going into margin call or wipe out, suggestions on how to improve on the trading system, and/or any other suggestions and highlights which I have no doubt overlooked.

Thank you all very much!

==========================

I forgot to add that should price drop down sufficiently to give me 3 months worth of swaps (i.e AUD1,143.00) or more, I will close out all trades to take the profits and then place 10-15 pending orders and wait for them to be triggered within the 3 months period.
Furthermore, as account grows, I will probably increased the lot size trades from 0.05 to 0.1 or maintain more than 10-15 open trades at a time.

In this scenario, I will be fast tracking the account build up and will not have to wait for the full year to achieve the 193.5% gain.

 

[RahmanSL]

Updates No.1


Yesterday, Wed 22/Jan/2014, was treble swap rates day and I…hehehe…couldn’t resist taking some more trades for the swaps.
P/S: That’s how I managed to wiped out most of my past trading accounts when I took just one too many trades then my account size can handle (over trading).

Today, Thu 23/Jan/2014, my trading account has 28 opened trades and has received AUD121.28 additional positive swaps (total AUD131.44 – AUD10.16 from previous swap already received).

Also today, I have transferred additional AUD1,803.90 from another account to beef up this trading account free margin.

With present 28 opened trades, daily positive swaps received is AUD45.72 and, if these are maintained for 1 full year, total positive swaps should amount to AUD16,687.80 which will be 396.96% increase over Actual total Deposits of AUD4,203.90, bringing account size to AUD20,848.50
I have placed 4 numbers 0.1 lot size “Pending Orders” which (depending on market movements/sentiments and/or available account free margin level) I might or might not allow to be triggered.

I have included 3 attachments pertaining to above updates for further info & details.


As mentioned at the start of this thread, all comments on what I am doing incorrectly, or any suggestions to improve on the trading system, will be most welcome and appreciated.

 

[RahmanSL]

Reserved for updates3

 

[RahmanSL]

Reserves for updates4

 

[RahmanSL]

Reserved for updates5

 

[RahmanSL]

Reserved for updates6

 

[mistersmith14]

This makes me more interested.

 

[willforex]

Looks Good. Any updates ??

 

[bagwort]

I've had my eye on the TRY recently. The sudden fall in the value of the lira was because the central bank didn't raise interest rates as expected, saying they would have a higher emergency rate for when it's needed. Then they had an emergency meeting where they did raise interest rates. There was some political opposition to raising rates, and there has been a lot of bad news out of Turkey, and the TRY plummeted, making me think it might be a good time to look for buying opportunities (just been reading Jamie Saettele's book on Forex sentiment). I've been watching it. From what I've seen it is very illiquid in the Asian session, hardly moving until they wake up in Turkey, presumably when the financial centers in Istanbul go online.

Personally I'm waiting for it to retrace or make a double top or some kind of reversal pattern before I take a long-term trade but I sometimes open a trade around midnight EST and let it run while I sleep (I live in East Asia), which means I have got the swap when I wake up in the morning, plus whatever I earn on the trade itself.

From what I've observed, it seems to wake up around 6am GMT, move one way for a while, then retrace the move in NY afternoon, but I will keep observing it. Personally, I like to see EURTRY or USDTRY rise during Europe then look to trade a retracement in NY afternoon, because of the swap, I only trade the lira long.

 

[bagwort]

What would happen if you opened a long TRY trade at 16:55 EST and closed it at 17:05? Would you get the swap? Would you get banned by your broker?